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Question: A year ago, I signed a contract to build a villa with one contractor, and according to the payment schedule, I paid all that was owed by me. But the contractor stopped construction six months ago, and the consultant is aware of that.

Do I have the legal right to hire a new contractor to complete the construction as the current contractor refuses to cancel the contract? What action can I take against the contractor, and do I have the legal right to demand compensation for the damages I suffered due to the delay? There is a penalty clause against the contractor to pay a fine of Dh500 for each day of delay. Please advise.

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Answer: According to Articles 877 and 878 of the Civil Transactions Law, the contractor shall perform his work according to the conditions of the contract. If it is established that he is fulfilling his obligations in a manner that is defective or contrary to the agreement, the owner may ask the immediate cancellation of the contract, if remedying the situation is impossible. Otherwise, the owner may summon the contractor to abide by the terms of the contract and rectify, within a reasonable time, the manner in which he is performing the work.

If at the expiration of the fixed period, the contractor fails to comply with this requirement, the owner may ask the judge for the cancellation of the contract or authorise him to hand over the completion of the work to another contractor at the expense of the first contractor.

The contractor shall warrant the results of his act and work against prejudice or loss whether or not caused by his trespassing or negligence. There is no warrant if this occurs due to an accident that could not be avoided.

This means that you have the right to file a case to cancel the contract with the right to claim all the compensations for the damages, loss and delay you suffered and to bring a new contractor or to ask the judge to authorise you to hand over the completion of the work to another contractor at the expense of the first contractor. The court has the jurisdiction to make an estimation and take a decision on the proof and documents submitted.